Kotak Mahindra Bank sees a standalone net profit of Rs 4,122.96 crore for the June-ended quarter (Photo credit: Agencies).MUMBAI: Kotak Mahindra Bank reported a standalone net profit of Rs 4,122.96 crore for the quarter ended June 30, 2026, up 25.6 per cent from Rs 3,281.68 crore a year earlier, driven by higher net interest income and sharply lower provisions. On a consolidated basis, net profit rose 22.5 per cent to Rs 5,480.46 crore from Rs 4,472.18 crore in the corresponding quarter last year.Net interest income (NII) increased 9.2 per cent to Rs 7,928.43 crore from Rs 7,259.29 crore a year ago. Interest earned rose 4.6 per cent to Rs 14,477.49 crore from Rs 13,836.54 crore, reflecting loan growth, while interest expended declined 0.4 per cent to Rs 6,549.06 crore from Rs 6,577.25 crore. Interest income therefore grew faster than interest expense, supporting the expansion in NII.Non-interest income increased 8.4 per cent to Rs 3,338.20 crore from Rs 3,079.98 crore, providing additional support to overall income. The standalone financials do not provide a detailed break-up of other income.Total income rose 5.3 per cent to Rs 17,815.69 crore from Rs 16,916.52 crore, aided by growth in both net interest income and non-interest income. Operating profit increased 10.2 per cent to Rs 6,131.35 crore from Rs 5,563.69 crore, even as operating expenses rose 7.5 per cent to Rs 5,135.28 crore from Rs 4,775.58 crore.Provisions and contingencies fell 44.7 per cent to Rs 668.13 crore from Rs 1,207.76 crore, supporting earnings growth during the quarter.On the balance sheet, deposits increased 0.1 per cent sequentially to Rs 5,72,820 crore from Rs 5,72,456 crore at the end of March 2026, while net advances rose 3.3 per cent to Rs 5,12,249 crore from Rs 4,96,009 crore. On a year-on-year basis, deposits grew 11.7 per cent from Rs 5,12,838 crore, and net advances increased 15.2 per cent from Rs 4,44,823 crore. Gross customer advances rose 2.6 per cent sequentially and 15.0 per cent year-on-year to Rs 5,27,610 crore.Asset quality improved, with the gross NPA ratio declining to 1.18 per cent at June-end from 1.48 per cent a year earlier, while the net NPA ratio fell to 0.27 per cent from 0.34 per cent. The bank's Basel III capital adequacy ratio stood at 22.78 per cent, compared with 23.00 per cent a year earlier.